Investor Presentaiton
Other Reconciliation of Non-GAAP Measures
($ in ooos)
(Unaudited)
Three Months Ended
March 31,
2023
2022
Six Months Ended
March 31,
2023
2022
NJNG Utility Gross Margin
•
NJNG's utility gross margin is defined
as operating revenues less natural gas
purchases, sales tax, and regulatory
rider expenses. This measure differs
from gross margin as presented on a
GAAP basis as it excludes certain
operations and maintenance expense
and depreciation and amortization.
Energy Services Financial Margin
Financial margin removes the timing
differences associated with certain
derivative and hedging transactions.
Financial margin differs from gross
margin as defined on a GAAP basis as
it excludes certain operations and
maintenance expense and
depreciation and amortization
expenses as well as the effects of
derivatives instruments on earnings.
A reconciliation of gross margin, the closest GAAP financial measurement, to utility gross margin is as follows:
Operating revenues
Less:
Natural gas purchases
Operating and maintenance (1)
Regulatory rider expense
Depreciation and amortization
Gross margin
Add:
Operating and maintenance (1)
Depreciation and amortization
Utility gross margin
$
400,838 $
463,812 $
758,584 $
738,584
158,694
215,223
343,465
339,817
30,711
26,748
57,005
39,889
23,154
30,910
41,405
47,581
25,319
23,344
50,209
46,237
162,960
167,587
266,500
265,060
30,711
26,748
57,005
39,889
25,319
23,344
50,209
46,237
218,990
217,679
373,714
351,186
A reconciliation of gross margin, the closest GAAP financial measurement, to financial margin is as follows:
Operating revenues
Less:
Natural Gas purchases
Operating and maintenance (1)
Depreciation and amortization
Gross margin
Operating and maintenance (1)
Depreciation and amortization
Unrealized loss (gain) on derivative instruments
Add:
N
New Jersey
Resources
and related transactions
Effects of economic hedging related to natural gas
inventory
Financial margin
(1) Excludes selling, general and administrative expenses
$
196,730 $
412,645 $
518,512 $
781,889
161,114
411,146
394,401
689,833
7,668
62
27,886
3,978
32
11,123
7,247
(2,511)
119
112,869
60
84,749
7,668
62
3,978
32
11,123
119
7,247
60
13,795
40,446
(26,091)
(45,201)
(11,203)
38,208 $
1,155
43,100
12,769
24,732
$
110,789 $
71,587
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